Was reading an interview with Baird analyst regarding sponsors and MLP's. Stated that you have to sift through MLP's to decide which sponsors use their MLP's as wealth generators for sponsors as opposed to shareholders. Looks like all recent acquisitions are from First Reserve or areas around First Reserve. Plus, can't seem to get specific details on these "deals" other than the top line number. Are they accretive to DCF, etc? Looking for comments from board on this. On the face, CMLP seems to be a dropdown vehicle for First Reserve assets. This is maybe why shareprice is lagging as smart investors avoid. Just my guess and looking for input. Ken
I undestand what you are saying, however FR does own roughly 30% of CEQP. Also the former CEO of NRGY owns a good amount of CEQP as well. I don't remember the exact amount but FR also owns a chunk of CMLP as well. So if they are trying to generate wealth from dropdowns from FR, they are destroying wealth on the other end where they hold CEQP or CMLP stock. And also an underperforming CMLP is not good for CEQP, so they can't really benefit CEQP at the expense of CMLP.